Newsquawk Daily European Equity Opening News

ASIA

APAC stocks were predominantly lower following the mixed handover from Wall St, where the major indices were somewhat choppy and small caps underperformed as yields edged higher. ASX 200 traded indecisively but eventually eked mild gains in the aftermath of the stronger-than-expected jobs data from Australia. Nikkei 225 underperformed following recent currency strength and as earnings results remained in the spotlight in Japan. Hang Seng and Shanghai Comp were lacklustre amid little in the way of fresh catalysts to spur momentum, while Tencent shares traded indecisively post-earnings and Alibaba results are scheduled for release today.

EUROPEAN CLOSES

BOURSES: DAX: -0.50 % at 23,500, FTSE 100: -0.38 % at 8,571, CAC 40: -0.65 % at 7,823, Euro Stoxx 50: -0.36 % at 5,397, AEX: +0.09 % at 928, IBEX 35: +0.38 % at 13,825, FTSE MIB: +0.52 % at 40,285, SMI: -0.20 % at 12,124, PSI: -0.23 % at 7,174.

SECTORS: Financials 0.65%, Utilities 0.46%, Materials 0.20%, Industrials -0.14%, Telecoms -0.36%, Consumer Stpl -0.43%, Energy -0.47%, Consumer Disc -0.54%, IT -0.71%, Healthcare -1.56%.

FTSE 100

EU-UK Relations - Plans for a reset of UK-EU relations hit trouble due to fishing rights and youth mobility as EU member states demanded further concessions from the UK, according to the FT. (FT)

OTHER UK COMPANIES

BROKER MOVES

DAX

Allianz (ALV GY) - Q1 (EUR): Operating Profit 4.2bln (exp. 4.2bln), Net Income 2.6ln (exp. 2.68bln), EPS 6.61 (exp. 6.65). On track to achieve FY guidance. (Newswires)

Deutsche Telekom (DTE GY) - Q2 (EUR): Revenue 29.75bln (exp. 29.67bln), EBIT 6.7bln (exp. 6.69bln), EPS 0.58 (exp. 0.46). FY25 guidance raised. (Newswires)

Deutsche Bank (DBK GY) - Co. has agreed to sell its CollerEquity secondary private equity fund, with over USD 800mln in net assets, to wealthy European and Asian clients, Bloomberg reports. The move responds to growing demand for alternative investments and involves secondary transactions where existing fund commitments are bought from investors seeking exit. (Newswires)

Merck KGaA (MRK GY) - Q1 (EUR): Sales 5.28bln (exp. 5.29bln), adj. EBITDA 1.5bln (exp. 1.5bln), EBIT 1bln (exp. 1.19bln), EPS 1.69 (exp. 2.17). FY Guidance: Revenue 20.9-22.4bln (exp. 21.7bln), EBITDA 5.8-6.4bln (exp. 6.2bln). (Newswires)

RWE (RWE GY) - Q1 (EUR): adj. EBITDA 1.31bln (1.26bln), adj. Net 498mln (exp. 406mln). Outlook and dividend guide confirmed. (Newswires)

Siemens (SIE GY) - Q2 (EUR): Revenue 19.76bln (exp. 19.22bln), orders 21.64bln (exp. 20.07bln), net 2.44bln (prev. 2.20bln); affirms EPS outlook. (Newswires)

ThyssenKrupp (TKA GY) - Q2 (EUR): Revenue 8.58bln (exp. 8.56bln), Orders 8.1bln, adj. EBIT 19mln (exp. 146mln) due to lower shipments and planned conversion related shutdowns at steel. (Newswires)

OTHER GERMAN COMPANIES

Ceconomy (CEC GY) - Q2 (EUR): Sales 5.2bln (exp. 5.6bln), adj. EBIT 10mln (prev. 5mln). Outlook confirmed. (Newswires)

ProsiebenSat.1 (PSM GY) - Q1 (EUR): Revenue 855mln (exp. 855mln), adj. Net -14mln (exp. -9mln). 2025 guidance confirmed. (Newswires)

Tag Immobilien (TEG GY) - Q1 (EUR): adj. EBITDA 62mln. Confirms guidance. (Newswires)

Talanx (TLX GY) - Q1 (EUR): Revenue 12.4bln, +5%. (Newswires)

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

Euronext (ENX FP) - Q1 (EUR): Revenue 458mln (exp. 445mln), adj. EPS 1.80 (exp. 1.78), adj. EBITDA 294mln (exp. 275mln). Announces the launch of indexes that are to target defense and energy security. (Newswires)

Vallourec (VK FP) - Q1 (EUR): Revenue 0.99bln (exp. 0.92bln), EBITDA 207mln (exp. 198mln), Net Income 86mln (exp. 91mln). (Newswires)

Ubisoft (UBI FP) - FY (EUR): Sales 1.89bln (exp. 1.89bln), adj. EPS -0.56 (exp. -00.47), adj. Operating Income -15mln (exp. -48mln). Outlook: around break-even for Operating Income. (Newswires)

BROKER MOVES

PAN EUROPE

KBC (KBC BB) - Q1 (EUR): NII 1.4bln (exp. 1.4bln), EPS .132 (exp. 1.19), Revenue 2.9bln (exp. 2.86bln), PBT 747mln (exp. 680mln). (Newswires)

BROKER MOVES

SMI

Roche (ROG SW) - Confirms receipt of FDA approval for Ventana. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.10% at 5,983, NDX +0.57% at 21,319, DJI -0.21% at 42,051, RUT -0.88% at 2,084

SECTORS: Communication Services +1.58%, Technology +0.96%, Consumer Discretionary +0.38%, Financials -0.28%, Consumer Staples -0.37%, Industrials -0.48%, Utilities -0.49%, Energy -0.59%, Real Estate -0.90%, Materials -0.96%, Health -2.31%.

Cisco Systems (CSCO) - Cisco shares rose +2.8% afterhours after a Q3 earnings beat and FY25 guidance raise. Q3 EPS 0.96 (exp. 0.91), Q3 revenue USD 14.1bln (exp. 14.1bln). Q3 Remaining Performance Obligations +7% Y/Y at USD 41.7bln, with 51% of this amount expected to be recognised as revenue over the next 12 months; product RPO +10%, services RPO +5%. Said AI infrastructure orders exceeded USD 1.25bln YTD, one quarter ahead of target. CFO Scott Herren to retire in July, succeeded by strategy chief Mark Patterson. Sees Q4 adj. EPS between 0.96-0.98 (exp. 0.95), and sees Q4 revenue between USD 14.5bln-14.7bln (exp. 14.58bln). For the FY, raised FY25 EPS outlook, sees adj. EPS between 3.77-3.79 (exp. 3.73), and sees FY revenue between USD 56.5-56.7bln (exp. 56.47bln).

CoreWeave (CRWV) - Q1 EPS -1.49 (exp. -0.17), Q1 revenue USD 982mln (exp. 853.04mln). Profit miss was largely due to USD 177mln in IPO-related stock-based compensation. Q2 sales seen between USD 1.06–1.1bln (exp. 986.7mln); FY revenue guide raised to 4.9–5.1bln (exp. 4.61bln). Capex for the year is expected to reach USD 20–23bln, driven by client demand including a new USD 4bln post-quarter contract with OpenAI, in addition to an earlier USD 11.9bln 5yr agreement. Its Q3 revenue backlog rose +63% to USD 25.9bln, though remaining performance obligation fell slightly to USD 14.7bln (vs 15.1bln at end of 2024); it said no single client represented more than half of the backlog. CEO attributed increased spend to client uptake, not pricing, and said new classification delays were affecting how backlog metrics were interpreted. The company stated it does not expect material impact from recent US tariffs. Despite the beat and strong guidance, shares fell 7% in extended trading, following a brief rise, as investors evaluated complex metrics and future growth assumptions.

Footlocker (FL), Dick's Sporting Goods (DKS) - Dick’s Sporting Goods is close to acquiring Foot Locker for around USD 2.3bln, or USD 24/shr, with a deal potentially finalised by Thursday, according to sources cited by the WSJ.

Shein - Shein Group lowered US retail prices by about 13% after the Trump administration temporarily cut tariffs on Chinese imports, Bloomberg reports. The average price of 98 tracked products fell to USD 5.56 (from USD 6.38), as the online retailer aims to regain consumers deterred by previous tariff-driven price rises.

Starbucks (SBUX) - Starbucks is exploring options for its China business, including a potential stake sale, by reaching out to private equity firms, tech companies, and others, according to sources cited by Bloomberg. The company has solicited investor feedback this week via a financial adviser, the report said, adding that its China assets could be valued at several billion dollars.

UnitedHealth Group (UNH) - The DoJ is investigating UnitedHealth for possible criminal Medicare fraud, WSJ reports citing sources. The probe, led by the healthcare-fraud unit of the DoJ’s criminal division, has been active since at least last summer, the report said. UnitedHealth denied notification from the DoJ regarding a reported criminal investigation into Medicare fraud, affirming confidence in the integrity of its Medicare Advantage programme.

15 May 2025 - 06:55- Research Sheet- Source: Newsquawk